India Hikes Fuel Prices

Petrol and diesel prices in India were hiked by Rs 3 per litre each, and CNG prices by Rs 2 per kg, on May 15, 2026. This marks the first significant increase in over four years and is attributed to surging global Petroleum prices, which rose over 50% following US-Israeli strikes on Iran and Tehran's retaliation, disrupting energy flows through the Strait of Hormuz. State-owned fuel retailers, including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, had been incurring massive losses, estimated at Rs 1,000 crore per day, due to the freeze on retail rates during state elections. The government, led by the India — Bharatiya Janata Party, had previously reduced excise duty on fuels in March to cushion consumers. Private retailers like Nayara Energy and Shell plc had already increased their prices. The hike is expected to have an impact on India's retail and wholesale inflation, affecting various sectors through increased freight and logistics costs. Prime Minister Narendra Modi has urged citizens to conserve fuel to mitigate the economic strain.